Plans for shared mobility and transit company Swvl to acquire smart bus platform Zeelo have been called off.
According to U.K.-based Zeelo, all pre-market completion obligations were met, but following financial market volatility, “Swvl and Zeelo mutually agreed to terminate the planned transaction.” Zeelo claims it has seen more than 1000% growth since the start of 2020 and will continue to focus on profitable growth in developed markets.
Swvl, the shared mobility and transit company, has announced plans to acquire smart bus platform Zeelo.
Terms were not disclosed although the Financial Times reports it as a $100 million deal.
On completion of the deal, which is expected in May, U.K-based Zeelo will be Swvl’s fifth acquisition in the past year following its acquisitions of Viapool and Shotl, Volt Lines and door2door.
A statement says the acquisition enables Dubai-based Swvl to establish a presence or expand on an existing foothold in the U.K., South Africa and the U.S.
Zeelo has a team of 160 staff across the world including 29 software engineers at an R&D hub in Barcelona.
Mostafa Kandil, founder and CEO of Swvl, says: "Swvl and Zeelo share a vision and mission to provide reliable transportation that gets riders where they need to go in an affordable, safe, and environmentally-friendly manner.
"With an impressive suite of turnkey TaaS and SaaS solutions and an established footprint in the United Kingdom, South Africa, and the United States, Zeelo rapidly advances our leading market position as a provider of technology-enabled mass transit solutions on a global scale."
Sam Ryan, founder and CEO of Zeelo, adds: "Swvl is revolutionizing the mass transit industry and we are thrilled to join forces with them on this next phase of Zeelo's journey to firmly establish smart bus transport as the best-in-class shared mobility solution that takes account of all income levels and the needs of ordinary, every-day travelers.
"Bus transport done well with tech can take us beyond our dependency on cars and taxis which are not suitable for commutes from non-urban areas. We look forward to bringing Swvl insights from Zeelo's strategic pivot during the global pandemic and we've been impressed by Swvl's fast growth in challenging markets.”
Swvl recently listed on the Nasdaq via special purpose acquisition company following its combination with Queen's Gambit Growth Capital.